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HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

Replacement cost Method

This method may be used only in case of those asset which are to be replaced at the end of their lives.The greatest advantage of this methods that no financial difficulty is faced at time of replacement of asset.Its disadvantage is that profit and loss account does not show true and fair position because depreciation charged in this method is not real but notional.

a/n

Here,a=replacement cost of the asset,n=number of years of its estimated life

ENTER THE VARIABLES TO BE USED IN THE FORMULA